How to incorporate gifting into your marketing campaigns

By Zach Links|5 min read|Updated Nov 8, 2024

A gift and a website, representing incorporating gifting into digital marketing campaigns.

Gifting can be a powerful way to drive customer acquisition and loyalty. A recent Forbes study showed that customers who receive gifts are 43% more likely to stay with a company and spend more over time.

The same study showed nearly half of companies report substantial benefits from their gifting programs. The biggest impact? Making recipients feel valued, with 45% of companies citing this as their primary benefit.

Companies are investing heavily in customer and partner gifting programs, with 60% spending more on external gifts than internal rewards. This strategy proves effective — around 80% of consumers say they're more likely to do business with companies that offer incentives.

In this guide, we'll break down exactly how to create an effective gifting strategy, from selecting the right rewards to measuring ROI.

Gift marketing creates an immediate emotional connection with your target buyer. When customers receive something of value, they feel appreciated and are more likely to reciprocate through continued business or referrals.

The ROI on gifting can be substantial. Referral programs often include gift-based promotions and those customers have up to 25% higher lifetime value than non-referred customers. And those customers are 200% more likely to spend compared to customers acquired through other channels.

Gifting helps your brand stand out in a crowded marketplace. In an era of digital ads and email campaigns, a thoughtful gift creates a memorable touchpoint that customers actually appreciate.

Start by defining clear goals for your gifting program. Whether you're aiming to acquire new customers, drive referrals, or increase retention, your objectives will shape the type of gifts and distribution method you choose.

Consider your target audience and what they value most. Our research shows that 65% of people prefer receiving money over other types of gifts, while others may appreciate experiences or branded items.

Build a systematic approach to gift distribution.

Determine trigger points in the customer journey where gifts will have the most impact — whether that's after first purchase, upon referral, or during key retention milestones.

Here are some quick tips for success — and a few common mistakes to avoid.

Do:

Make redemption easy and immediate: Recipients should be able to claim their reward in under a minute. According to a Salesforce survey, customers cite automatically applied rewards as one of their top motivators for loyalty program participation.
Personalize the gifting experience: Include the recipient's name and a personalized message with every reward. Companies that customize their gifting programs see 35% higher engagement rates than those sending generic rewards.
Track and measure results: Monitor key metrics like redemption rates, customer retention, and ROI for each campaign. This data helps optimize future programs and justify continued investment in gifting strategies.
Test different gift values and types: Start with small tests across different segments to find the sweet spot. A/B testing different reward amounts and types (cash vs. gift cards vs. branded items) helps identify what motivates your specific audience to take desired actions.
Consider compliance requirements: Understand tax implications and regulatory requirements for your industry and region. Always include necessary disclosures and ensure your program meets legal guidelines. Pro tip — the right rewards platform can help you drive compliance by automatically distributing W-9 forms to eligible recipients.

Don't:

Send gifts without a clear strategy: Random gifting wastes resources and dilutes impact. Every gift should tie to a specific business objective and target audience. Document your gifting triggers, success metrics, and expected outcomes before launching any campaign.
Make redemption complicated: Avoid multiple steps, account creation requirements, or complex verification processes. Consider using platforms that allow single-click redemption through email or SMS.
Choose gifts that feel impersonal: Generic or low-value rewards can actually harm relationships, as shown by our recent survey on corporate gifting. Consider timing and context when selecting gifts — a small, relevant reward can go a long way.
Forget to follow up: Measure the impact of your gifts and maintain communication with recipients. Create a systematic approach to tracking both quantitative metrics (redemption rates, sales lift) and qualitative feedback.

Our research shows that people prefer cash over all other types of gifts, but gift cards can offer enhanced personalization and memorable brand experiences.

Physical gift cards offer flexibility but come with logistical challenges. Shipping costs, delivery delays, and potential loss in transit make them less efficient for large-scale campaigns. Digital gift cards eliminate these issues while providing instant delivery and easier tracking.

Prepaid cards combine the flexibility of cash with widespread acceptance. Recipients view Visa prepaid cards nearly as valuable as cash transfers, and they don't require dealing with the fees or complications of adding money to an employee's paycheck.

Branded merchandise can work for specific campaigns but often has lower perceived value. And, oftentimes, it ends up in the landfill.

Consider these factors when selecting gift types:

Recipient preferences in your target market
Program objectives and desired behaviors
Distribution scale and timing requirements
Budget including delivery and administration costs
Compliance requirements for your industry
International requirements (if applicable)

A $25 Amazon gift card for new policyholders might seem simple, but it became a key market differentiator for Spot Pet Insurance. They distributed over $1.3 million in rewards to thank new customers.

The impact on operations was significant. "We're saving around three hours a week. That's 20 whole days of work per year that we don't touch anymore," said Shane Grosskopf, Compliance and Operations Manager.

The gift promotion is mostly turnkey, but "It's really helped us stand out from our competitors,” Shane said.

Snagshout sends thousands of dollars in cashback weekly to customers who try new Amazon products. The program has revolutionized their customer experience.

"Before, anyone who sent us a proof of purchase had to wait 30 days," says Ben Larkins, CTO at Snagshout. "Now, it gets sent to their wallet as soon as they send in their order confirmation."

Notably, 83% of customers now choose redemption options beyond PayPal, with Amazon gift cards being the most popular choice. They've distributed over $234,000 in rewards while saving $6,000 in transaction fees.

When in-person events halted during the pandemic, FUSION Performance Group needed to reinvent their approach. They distributed $1.6 million in event incentives, helping double their sales during a challenging period.

"We want to send hundreds, even thousands of people incentives they'll actually use and appreciate in a matter of moments," says Lynn Davis-Hickman, IS & Resources Manager.

The platform's flexibility allowed FUSION to create branded experiences and offer international rewards, transforming their virtual events into measurable successes.

Consider these factors when evaluating a gifting strategy:

Your customer acquisition costs
Average customer lifetime value
Current retention rates
Competition in your market
Available budget for rewards

Gifting is particularly effective for:

Companies with high customer lifetime value

Companies with higher customer lifetime value may find gift marketing particularly attractive. SaaS companies, financial services, and professional services firms can often absorb the upfront cost of gifting programs while maintaining healthy margins, especially when gifts are strategically offered at key points in the customer journey.

Businesses in competitive markets

When products or services are similar across providers, gifting can be a key differentiator. Insurance companies, telecommunications providers, and e-commerce brands can use strategic gifting to stand out and capture market share.

Organizations targeting high-value clients

B2B companies pursuing enterprise deals can leverage gifting to nurture relationships throughout long sales cycles. Thoughtfully planned gifting programs can help maintain engagement during complex sales processes, especially when coordinated with key touchpoints like demos, negotiations, or contract renewals

Companies with strong referral potential

Industries where word-of-mouth drives decisions may find value in gift-based referral programs. Professional services, healthcare providers, and consumer brands can use strategic gifting to encourage satisfied customers to share their positive experiences, potentially amplifying their word-of-mouth marketing efforts.

The most successful gifting programs align with broader marketing objectives. Look for opportunities where gifts can enhance existing campaigns or create new touchpoints with customers.

Want to learn more about using gifts to maximize your marketing campaigns? Learn how a major medical aesthetics company achieved #3 market share through an automated gifting program.